SENATE BILL REPORT

                   SB 6616

              As Passed Senate, February 9, 1996

Title:  An act relating to the release of employment security data to governmental agencies.

Brief Description:  Expediting the release of employment security data to governmental agencies for preparing small business economic impact statements or cost benefit analysis.

Sponsors:  Senators Hale, Sheldon, Oke and Haugen.

Brief History:

Committee Activity:  Government Operations:  1/30/96, 1/31/96 [DP].

Passed Senate, 2/9/96, 45-0.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, Hale, Heavey, McCaslin and Winsley.

Staff:  Rod McAulay (786-7754)

Background:  The Department of Employment Security maintains records including wage and salary data, employment histories and other information regarding individual businesses and employees.  To the extent the information identifies or is about specific businesses or employees it may be subject to privacy and confidentiality protection.

When any state agency is in the process of adopting a new rule, it may be required to evaluate the rule on the basis of its impact on small business by preparing an economic impact statement required by the Regulatory Fairness Act or to perform a general cost benefit analysis under the Administrative Procedure Act.  Preparation of these statements or analyses may require information from the Department of Employment Security.

There is concern that the Department of Employment Security may not release employing unit names, addresses, number of employees and wage data without complying with statutory requirements that a notice and request be formally served on all individuals and employing units involved in the disclosure.  The notice must advise the individual or employing unit that they may contact the public records officer of the Employment Security Department to state any objection to the release of the records or information.

Summary of Bill:  When a state agency makes an application for release of information from the Department of Employment Security regarding the employing unit names, addresses, number of employees and wage data, for the purpose of preparing a small business economic impact statement or cost benefit analysis as part of a rule making process, the requesting agency is not required to serve a notice and copy of the application for records or information on the individuals and employing units identified in the disclosed information.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This legislation corrects an oversight in the regulatory reform legislation.

Testimony Against:  None.

Testified:  Ted Slatten, Independent Business Association.